Glanbia plc intends to sell its 40% holding in Glanbia Ireland to Glanbia Co-op for €307m.

Glanbia plc and Glanbia Co-op confirmed that they have signed a non-binding memorandum of understanding regarding the proposed deal.

The proposed purchase must be approved at a special general meeting of the co-op, expected in December.

Approval of over 66% of co-op shareholders will be required to get it across the line

An extraordinary general meeting of the plc, expected to follow in February next year, will also be required for plc approval.

The entire deal could be finalised by the middle of 2022. Approval of over 66% of co-op shareholders will be required to get it across the line.

Glanbia Co-op’s purchase of the 40% stake in Glanbia Ireland will be funded by a sale of plc shares and borrowings.

The deal, if approved, will give the co-op sole control of Glanbia’s dairy and agribusiness, Glanbia Ireland. It operates 11 dairy and feed processing plants, 52 retail branches and has over 2,000 employees.

Both the IFA and ICMSA said they would assess the proposed purchase before taking a position on the deal.

The proposed new deal will have no impact on the Royal A-Ware joint venture at Belview.